It is illegal to generate over 1 MegaWatt (MW) of electric power in any part of Nigeria without a Captive Power Permit from the Nigerian Electricity Regulatory Commission (NERC). A Captive Power Permit is needed to generate over 1MW of electricity in any part of Nigeria for private consumption without transmitting/distributing or selling such to any other person. A Permit lasts for 5 years and can be renewed. Where a holder of such permit wishes to renew such, he must make an application for renewal to NERC at least 3 months before the expiration of the permit. Failure to adhere is a contravention of NERC Regulation, punishable with fine of not more than #100,000.00 and or imprisonment for not more than 1 year and it is also a ground for cancellation of Permit.
My authorities are Clauses 1, 2, 8, 10, 11, 13 and 14 of Nigerian Electricity Regulatory Commission (Permits for Captive Power Generation) Regulations, 2008.
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